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Macroeconomics (ECO211)

Total questions: 20

Worksheet time: 16mins

Name
Class
Date
1.

The proportion of any change in income that is spent rather than saved is

a)

the multiplier

b)

income determinants

c)

marginal propensity to consume

d)

macroeconomic equilibrium

2.

An economy is in macroeconomic equilibrium. If Y = 200, C =100, I =30, G=40 and M =30, what is the value of exports?

a)

60

b)

40

c)

90

d)

80

3.

The slope of the consumption function is

a)

equal to the MPC and is equal to 1.

b)

equal to the MPC and is less than 1.

c)

not equal to the MPC and is less than 1.

d)

equal to the MPC and is greater than 1.

4.

The three major macroeconomic goals do not include

a)

full employment

b)

price level stability

c)

sustained economic growth

d)

high levels of environmental quality

5.

Which of the following is an macroeconomics statement?

a)

The price of iPad increase about 8.5%.

b)

The inflation rate of Malaysia is 3.1% in 2019.

c)

FELDA profit increases every year

d)

The price of chicken increasing during Chinese New Year

6.
What type of GDP is calculated with the current year's prices?
a)
Nominal GDP
b)
Real GDP
c)
GDP per capita
7.

High levels of GDP per capita indicates

a)

higher levels of happiness 

b)

higher standard of living

c)

equal levels of wealth 

d)

self-sufficient communities

8.

Which type of unemployment is caused by employee skills that are obsolete and no longer needed?

a)

Structural

b)

Seasonal

c)

Frictional

d)

Cyclical

9.

Which of the following jobs would be considered seasonal?

a)

snow plow driver

b)

cashier at a grocery store

c)

part-time veterinary tech

d)

traveling nurse

10.
Money loses its value when it
a)

becomes too plentiful

b)

becomes too portable

c)
is divisible
d)
is durable
11.

When a bank makes a loan of $1,000, then

a)

the money supply increases by $1,000

b)

the money supply decreases by $1,000

c)

nothing

d)

the bank owes the FED $1,000

12.
Gross domestic product includes:
a)
intermediate as well as final goods.
b)
foreign goods as well as domestically produced goods.
c)
used goods sold in the current time period.
d)
only the value of final goods and services.
13.

In which of the following categories are there transactions of balance of trade recorded?

a)

Visible items

b)

Invisible items

c)

Capital transfers

d)

All of these

14.

Which of the following is not a part of current account?

a)

Export of goods

b)

Imports of services

c)

Grants and gifts

d)

FDI

15.

The sale of a Mercedes-Benz from Germany to France would be recorded as a merchandise export in the ________ account of Germany's balance of payments.

a)

Capital

b)

Current

c)

Official reserves

d)

Export

16.

The process of money creation or credit creation is done by

a)

commercial banks

b)

central bank

c)

World Bank

d)

rural bank

17.

The smallest fraction of bank deposits a bank is required by the central bank to hold

a)

reserve ratio

b)

capital requirement

c)

deposit assurance

d)

mortgage insurance

18.

Which of the following is not considered to be one of the necessary conditions of Mudharabah?

a)

Profit is to be shared according to the profit sharing ratio determined at the inception of the contract

b)

The capital provided cannot pay a periodical salary to the mudharib

c)

Loss is to be borne by the capital provider in all cases, even if it is due to the negligence of the mudharib

d)

Sub-Mudharabah is not allowed without the permission of the capital provider

19.

Taxing and spending to slow the economy is referred as 

a)
budget surplus 
b)
monetary policy
c)
contractionary policy
d)
budget deficit
20.
If and economy experiences a dramatic rise in prices, which fiscal policy action could be taken?
a)
Selling securities on the open market
b)
Raising interest rates
c)
Reducing government spending
d)
Raising reserve requirements